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.
Can you 1031 out of a syndication?
The answer is yes. The common misconception that you cannot do a 1031 exchange into syndication stems from the fact that when you invest in multifamily real estate syndication, you are purchasing shares of an entity that owns the property, not the property itself, and that this would not amount to a property swap.
What are typical syndication fees?
Upon successfully closing on a property, syndicators then earn an acquisition fee. The typical acquisition fee in a real estate syndication is 1% of the acquisition cost. However, it’s not uncommon to see fees range from 1% up to 3%, depending on the particular deal.