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What role do investors typically play in a real estate syndication?

They manage daily operations of the investment

They provide funds and receive a share of the profits

In a real estate syndication, investors primarily provide the necessary funds to help acquire and manage a property while also sharing in the profits generated by that investment. This structure allows investors to pool their resources, enabling them to engage in larger real estate projects than they could individually.

Investors typically do not engage in the daily management or operational aspects of the investment, such as managing tenant relations or overseeing property maintenance. These responsibilities are generally handled by a syndicator or management team specialized in real estate. Additionally, while investors may have input during property evaluations, the hands-on tasks, like conducting property inspections or evaluating loan options, are typically delegated to professionals or experienced team members who are part of the syndication's management structure. By focusing on funding, investors benefit from the potential returns without the burden of day-to-day involvement.

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They conduct property inspections

They evaluate loan options for the property

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