A real estate syndication is a partnership where multiple investors pool their money to invest in real estate. Typically investors are called Limited Partners(LP) and active partners are called General Partners (GP) who bring the deal together and manage the business plan. The goal is to invest in properties that are too big or expensive for individual investors to manage on their own.

The sponsor is the individual or company responsible for managing the project. They identify the investment opportunity, secure financing, oversee operations, and eventually execute the exit strategy. They often earn a management fee and a share of the profits.

These are individuals or entities that contribute the bulk of the capital but remain hands-off in day-to-day operations. They share in the returns based on their investment, typically receiving regular distributions and a portion of the profits upon the sale or refinancing of the property.

A Private Placement Memorandum (PPM) is a lengthy legal document which describes the terms, rights, the offering, usage of funds and risks. The PPM ensures transparency, helps companies comply with securities laws, and allows investors to make informed decisions.

Generally, the minimum investment is $50K.

Investor distributions differ for each deal, but most syndications provide them on a quarterly basis.

Individual:
For an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:
1) Earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.
2) Have a net worth exceeding $1 million, either individually or jointly with his or her spouse.

3) Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.

Entity:
For an Entity to qualify as an accredited investor, he or she must accomplish at least one of the following:
1) Entities with total assets exceeding $5 million
2) Entities where all owners are accredited investors then, they will make the entity accredited.