What is meant by 'real estate syndication'?

Real estate syndication refers to a partnership structure where multiple investors come together to pool their financial resources for the purpose of investing in real estate ventures. This collective investment approach allows individuals to participate in larger projects, which they might not be able to afford individually. By working together, syndicate members share both the risks and the potential rewards of the investment. This method can involve various types of properties, such as commercial, residential, or other real estate opportunities, and often includes the formation of a legal entity to manage the investment.

In this context, the other options do not accurately describe real estate syndication. The first option suggests a hybrid ownership model that would not involve multiple investors pooling resources, thus lacking the collaborative aspect characterizing syndication. The second option focuses on an individual investor managing a property alone, which is the opposite of the collective nature of syndication. Lastly, the fourth option implies an exclusivity to financial institutions, whereas syndication can involve a diverse group of investors, including private individuals, thus making it accessible to a broader audience.