Master Secrets of Profitable Real Estate Syndication Evaluation
Real-World Examples and Statistics
The real estate syndication market has experienced significant growth in recent years. According to a report by Preqin, the global real estate fund market reached $1.2 trillion in assets under management in 2020, with syndications playing a crucial role in this expansion4. Successful syndications often target multifamily properties, which have shown resilience and strong returns even during economic downturns.
For example, a syndication deal might involve acquiring a 200-unit apartment complex in a growing metropolitan area. By pooling resources, investors can benefit from economies of scale, reducing per-unit costs and increasing potential returns. This type of investment can yield annual returns ranging from 7% to 15%, depending on market conditions and management efficiency5.