Share

Investment Fundamentals

Investment Fundamentals

Back

Back

Real Estate Syndication FAQ: A Frequently Asked Questions Guide

11 Frequently Asked Questions About Real Estate Syndication

Real estate syndication is a collective investment avenue where multiple investors pool their financial resources to acquire equity positions in real estate ventures that might be otherwise unattainable, either due to a lack of sufficient capital or real estate project management experience.

Let's examine a few of the most frequently asked questions from prospective real estate syndication investors.

Tip: Learn more about real estate syndication with Crowd Street's Guide to Real Estate Syndication.

How to syndicate a real estate deal?

Syndicating a real estate deal involves identifying a viable investment opportunity, structuring the deal, raising capital, ensuring legal compliance, acquiring and managing the property, and eventually executing an exit strategy.

Throughout the process, syndicators, also known as sponsors, must maintain transparent communication with investors, distribute profits, if any, according to the agreed structure, and adhere to all relevant securities regulations and legal requirements.

The goal is to achieve a mutually beneficial outcome by pooling resources to access real estate investments and implementing strategies to achieve favorable outcomes.

What is the minimum investment required for syndication real estate?

The minimum investment for real estate syndication can vary widely depending on the deal and the syndicator, but it typically ranges from $25,000 to $100,000 or more.

Are real estate syndications available for non-accredited investors?

While many syndications are structured for accredited investors, there are opportunities available for non-accredited investors, depending on the regulatory exemptions the syndicator is operating under.

How long is the typical investment horizon in real estate syndication?

The investment horizon for real estate syndication can vary, but it typically ranges between 5 to 10 years, depending on the project and the syndicator's strategy. It's important to keep in mind that these are generally illiquid investments.

Can I invest in syndicated real estate deals through a self-directed IRA?

Yes, many investors use self-directed IRAs to invest in real estate syndications, but it is up to the syndicator whether or not they allow self-directed IRAs.

What are the tax implications of investing in syndicated real estate deals?

Investing in syndicated real estate can offer several tax benefits, including depreciation, mortgage interest deductions, and potentially lower capital gains taxes. There can also be potentially negative tax implications, including income being classified as Unrelated Business Taxable Income for some investors investing through a retirement account or added complexity in the tax filing process. However, individual tax implications can vary, so consulting a tax professional is advisable.

How do I find experienced syndicators and evaluate their track records?

Researching online, networking with other investors, and attending real estate investment seminars are some ways to find and evaluate syndicators. Assessing their past projects, experience, and transparency is crucial in evaluating their track record.

What happens if a syndicated property fails to execute on its business plan?

If a property underperforms, investors may be negatively impacted, including a complete loss of capital. The specific impact will depend on the deal's structure and the reasons for the underperformance.

Can I exit a syndication real estate deal before the investment term ends?

Exiting early can be challenging, if not impossible, as real estate syndications are illiquid investments. However, some syndicators may offer buyout options or facilitate secondary sales, but these can come with challenges and potential discounts.

Are there any specific legal requirements for syndicated real estate investments?

Yes, real estate syndications must comply with various laws, and syndicators must provide detailed disclosure documents to potential investors. Compliance with local real estate laws and regulations is also essential.

Is there a difference between direct and online real estate syndication?

Short answer: kind of. Real estate syndication involves a collection of investors pooling resources to invest in property, typically managed by a sponsor. Online real estate syndication connects investors to these opportunities via online platforms, generally making investment more accessible. Both methods allow passive investment in real estate.

Still have more questions about real estate syndication? We've got you covered. Check out the Comprehensive Crowd Street Real Estate Syndication Guide and details on the pros and cons of real estate syndication.

Crowd Street, Inc. ('Crowd Street') offers investment opportunities and financial services on its website, the Crowd Street Marketplace ("the Marketplace"). Crowd Street offers broker dealer services through Crowd Street Capital LLC ('Crowd Street Capital'), a registered broker dealer, Member FINRA/SIPC.This article was written by an employee(s) of Crowd Street and the contents of this publication are for informational purposes only. Neither this publication nor the financial professionals who authored it are rendering financial, legal, tax or other professional advice or opinions on specific facts or matters, nor does the distribution of this publication to any person constitute an offer, recommendation, or solicitation to buy or sell any security or investment product issued by Crowd Street or otherwise. The views and statements expressed are based upon the opinions of Crowd Street. All information is from sources believed to be reliable. This article is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance or success. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Crowd Street assumes no liability in connection with the use of this publication. An investment in a private placement is highly speculative and involves a high degree of risk, including the risk of loss of the entire investment. Private placements are illiquid investments and are intended for investors who do not need a liquid investment. No guarantee or representation is made that a project will achieve its investment objectives or that investors will receive any return on their investment. Investors should consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. All investors should review the offering's documents carefully before investing.

All information, content, and materials referenced in this memo are for general informational purposes only. This memo may contain links to other third-party websites. Such links are only for the convenience of the reader and Crowd Street nor its affiliates do not recommend or endorse the contents of the third-party sites. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the subject thereof. All projections, forecasts, and estimates of returns or future performance, and other 'forward-looking' information not purely historical in nature are based on assumptions, which are unlikely to be consistent with, and may differ materially from, actual events or conditions. Such forward-looking information only illustrates hypothetical results under certain assumptions.

Don’t miss these

Don’t miss these

Don’t miss these

Don’t miss these

Investment Fundamentals

Exploring 401(k) and Private Markets: New Possibilities Ahead

Jul 28, 2025

Private markets may soon appear in 401(k) plans. Explore what these possibilities could mean for investors and how Crowd Street empowers informed choices.

Read now

Investment Fundamentals

Exploring 401(k) and Private Markets: New Possibilities Ahead

Jul 28, 2025

Private markets may soon appear in 401(k) plans. Explore what these possibilities could mean for investors and how Crowd Street empowers informed choices.

Read now

Investment Fundamentals

Making Sense of CRE Valuations in Real Estate Deals

Jul 28, 2025

Not all CRE valuations are equal. Learn the difference between broker opinions and appraisals, plus key questions to ask when evaluating property value.

Read now

Investment Fundamentals

Making Sense of CRE Valuations in Real Estate Deals

Jul 28, 2025

Not all CRE valuations are equal. Learn the difference between broker opinions and appraisals, plus key questions to ask when evaluating property value.

Read now

Investment Fundamentals

Crowd Street's Private Equity Guide: Understanding the Basics

Jun 25, 2025

Discover how private equity works, some key risk factors, and ways individual investors can explore this space with Crowd Street's private equity guide.

Read now

Investment Fundamentals

Crowd Street's Private Equity Guide: Understanding the Basics

Jun 25, 2025

Discover how private equity works, some key risk factors, and ways individual investors can explore this space with Crowd Street's private equity guide.

Read now

Take your portfolio beyond the index.

Request Access

Take your portfolio beyond the index.

Request Access

Take your portfolio beyond the index.

Request Access

Take your portfolio beyond the index.

Request Access

CrowdStreet, Inc. (“Crowd Street”) offers investment opportunities and financial services on this website.

Broker dealer services provided in connection with an investment are offered through CrowdStreet Capital LLC (“Crowd Street Capital”), a registered broker dealer, Member of FINRA/SIPC. Information on all FINRA registered representatives can be found on FINRA’s BrokerCheck. Additional information is available in Crowd Street Capital's Client Relationship Summary (Form CRS).

Advisory services are offered through CrowdStreet Advisors, LLC (“Crowd Street Advisors”), a wholly-owned subsidiary of Crowd Street and a federally registered investment adviser. Crowd Street Advisors provides investment advisory services exclusively to private funds and does not otherwise provide investment advisory services to the Crowd Street Marketplace or its users. Additional information is available in Crowd Street Advisors’ Form ADV.

Crowd Street and its affiliates do not endorse any of the opportunities that appear on this website. Investment opportunities available through Crowd Street are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.

Performance information presented on this website has not been audited or verified by a third party. By accessing the Crowd Street Marketplace, you agree to be bound by its Terms of UsePrivacy Policy, and any other policies posted on this website. The Crowd Street Marketplace is only intended for accredited investors.
For more information, see Legal Documents and Important Disclosures.

Ⓒ 2025 Crowd Street Ltd. All Rights Reserved

CrowdStreet, Inc. (“Crowd Street”) offers investment opportunities and financial services on this website.

Broker dealer services provided in connection with an investment are offered through CrowdStreet Capital LLC (“Crowd Street Capital”), a registered broker dealer, Member of FINRA/SIPC. Information on all FINRA registered representatives can be found on FINRA’s BrokerCheck. Additional information is available in Crowd Street Capital's Client Relationship Summary (Form CRS).

Advisory services are offered through CrowdStreet Advisors, LLC (“Crowd Street Advisors”), a wholly-owned subsidiary of Crowd Street and a federally registered investment adviser. Crowd Street Advisors provides investment advisory services exclusively to private funds and does not otherwise provide investment advisory services to the Crowd Street Marketplace or its users. Additional information is available in Crowd Street Advisors’ Form ADV.

Crowd Street and its affiliates do not endorse any of the opportunities that appear on this website. Investment opportunities available through Crowd Street are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.

Performance information presented on this website has not been audited or verified by a third party. By accessing the Crowd Street Marketplace, you agree to be bound by its Terms of UsePrivacy Policy, and any other policies posted on this website. The Crowd Street Marketplace is only intended for accredited investors.
For more information, see Legal Documents and Important Disclosures.

Ⓒ 2025 Crowd Street Ltd. All Rights Reserved

CrowdStreet, Inc. (“Crowd Street”) offers investment opportunities and financial services on this website.

Broker dealer services provided in connection with an investment are offered through CrowdStreet Capital LLC (“Crowd Street Capital”), a registered broker dealer, Member of FINRA/SIPC. Information on all FINRA registered representatives can be found on FINRA’s BrokerCheck. Additional information is available in Crowd Street Capital's Client Relationship Summary (Form CRS).

Advisory services are offered through CrowdStreet Advisors, LLC (“Crowd Street Advisors”), a wholly-owned subsidiary of Crowd Street and a federally registered investment adviser. Crowd Street Advisors provides investment advisory services exclusively to private funds and does not otherwise provide investment advisory services to the Crowd Street Marketplace or its users. Additional information is available in Crowd Street Advisors’ Form ADV.

Crowd Street and its affiliates do not endorse any of the opportunities that appear on this website. Investment opportunities available through Crowd Street are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.

Performance information presented on this website has not been audited or verified by a third party. By accessing the Crowd Street Marketplace, you agree to be bound by its Terms of UsePrivacy Policy, and any other policies posted on this website. The Crowd Street Marketplace is only intended for accredited investors.
For more information, see Legal Documents and Important Disclosures.

Ⓒ 2025 Crowd Street Ltd. All Rights Reserved

CrowdStreet, Inc. (“Crowd Street”) offers investment opportunities and financial services on this website.

Broker dealer services provided in connection with an investment are offered through CrowdStreet Capital LLC (“Crowd Street Capital”), a registered broker dealer, Member of FINRA/SIPC. Information on all FINRA registered representatives can be found on FINRA’s BrokerCheck. Additional information is available in Crowd Street Capital's Client Relationship Summary (Form CRS).

Advisory services are offered through CrowdStreet Advisors, LLC (“Crowd Street Advisors”), a wholly-owned subsidiary of Crowd Street and a federally registered investment adviser. Crowd Street Advisors provides investment advisory services exclusively to private funds and does not otherwise provide investment advisory services to the Crowd Street Marketplace or its users. Additional information is available in Crowd Street Advisors’ Form ADV.

Crowd Street and its affiliates do not endorse any of the opportunities that appear on this website. Investment opportunities available through Crowd Street are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.

Performance information presented on this website has not been audited or verified by a third party. By accessing the Crowd Street Marketplace, you agree to be bound by its Terms of UsePrivacy Policy, and any other policies posted on this website. The Crowd Street Marketplace is only intended for accredited investors.
For more information, see Legal Documents and Important Disclosures.

Ⓒ 2025 Crowd Street Ltd. All Rights Reserved