Demystifying Syndication Costs: A Comprehensive Guide For Real Estate Investors

Syndication costs cover expenses involved in structuring and managing a syndicates investment, typically real estate. These costs are incurred by various entities throughout the syndication process, including the syndicator, property management companies, and lenders. Syndication costs can include due diligence, marketing, acquisition fees, management fees, loan fees, and disposition fees. Understanding the distribution of these costs among different entities is crucial for investors to gauge the overall profitability of a syndication investment.