What is a good return for a real estate syndication?
Preferred return is also known as a class A share in real estate syndication. Here, the syndicator decides what percentage it’ll be before presenting the deal to investors. Preferred return usually ranges from 5% to 9% and must be paid out to investors before the syndicator takes his part of the returns.
How much does a syndicator make?
Syndicators typically earn between 25% and 50% of distributable cash generated from operations, refinance or sale of a property, which may be paid as a direct split between the members and the syndicator (i.e., 65/35) or as a preferred return.
What are the three phases of syndication?
Summary. Syndicating a real estate deal is a big task, but it’s made much more approachable by distilling it down to the three fundamental phases: origination, operation, and liquidation.