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 →Free calculator for investors
See how a deal splits the money between you and the sponsor
Enter an investment, hold period, preferred return and profit split. See your estimated payout, the sponsor's promote, and how fees change the picture.
The deal
180% = the deal distributes $1.80 per $1 of LP capital before the sponsor's promote.
The terms
You'd receive about
–
total, an equity multiple of –
–Your profit
–Approx. average annual return
–Sponsor promote on your share
–Asset management fees on your capital
Simplified illustrative model: simple (non-compounding) pref, no catch-up, fees deducted from distributions. Real waterfalls vary; read the operating agreement.
How to use it
Four steps
- Enter your investment and how much the deal distributes to the LP class.
- Set the hold period, preferred return and profit split from the deal's terms.
- Add the asset management fee if it's paid before LP distributions.
- Compare the result across deals with different terms.
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