Syndication is the process of pooling capital from multiple qualified investors to purchase larger and potentially more profitable commercial real estate projects. It allows investors to share, and spread, both the risks and the rewards (profits).
This provides a savvy investor the opportunity to become part of a income producing property that may be too large to handle individually, from either a financial or risk position. These investments are secured by tangible assets and provide added security for most property investors. In many cases, this may offer the individual investor an opportunity to achieve better profits with lower risk than doing it on his/her own.
Most legal structures of syndication are a Limited Liability Company (LLC) or Tenants in Common (TIC), which offer the financial rewards of individual ownership without the burden of management responsibilities. Both structures have their nuances and should be tailored carefully for the subject property, and for the investors.
Conser Commercial is well positioned to provide individual investors the advantages that group syndication offers.
Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 ofRegulation D , a company may sell its securities to what are known as “accredited investors.”