Real Estate Syndication 101: A Guide for Accredited Investors
GPs and LPs, the capital stack, hold periods, returns and the questions that matter, explained plainly.
Read →For First-time passive investors
Your first passive real estate investment: start with the basics
New to syndications? A step-by-step learning path before you write your first check.
Why it comes up
Why first-time investors look at private real estate
- Curiosity about real estate without becoming a landlord.
- Friends or colleagues investing in deals.
- Desire to diversify beyond stocks and bonds.
What to watch
Considerations specific to you
- Learn the structure, fees and risks before evaluating a specific deal.
- Start with an amount you can leave untouched for many years.
- Be wary of urgency, guarantees and unusually high projections.
Accreditation
How accreditation usually applies
Most private real estate offerings are limited to accredited investors. Sponsors using Rule 506(c) must verify your status.
- Income test: $200,000+ individually or $300,000+ jointly in each of the last two years, with the same expected this year.
- Net worth test: $1 million+, alone or with a spouse or spousal equivalent, excluding your primary residence.
- Professional test: holding a Series 7, 65 or 82 license in good standing.
Summary of SEC rules for education. Confirm your status with your advisor; sponsors may request documentation. See who qualifies.
Start here
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Educational content only; not investment, tax or legal advice, or an offer to buy or sell any security.