Syndication
A deal where a sponsor pools money from many investors to buy a larger property. Investors are usually passive, and these offerings fall under securities law.
Also called: real estate syndication, syndicate, GP/LP deal
Related terms
A company that owns or finances income-producing real estate and is traded like a stock or held privately. REITs must pay out most of their taxable income as dividends.
A building with two or more separate housing units. Properties with two to four units can use residential loans; five or more are usually financed as commercial.
Property used for business or to produce income, such as offices, retail, industrial buildings and larger apartment complexes. It is usually valued on its income and financed with commercial loans.
Using borrowed money to buy more property than you could with cash alone. It can raise returns when values and rents rise and magnify losses when they fall.