REIT VS. SYNDICATION: THE ULTIMATE GUIDE

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REIT VS. SYNDICATION THE ULTIMATE GUIDE

• https//www.cherifmedawar.com/reit-vs-syndication-
  the-ultimate-guide/

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INDEX

• What Is a REIT?
• What Is a Syndication?
• How Does Real Estate Syndication Works
• Differences between REIT and Real Estate
  Syndications
• REITS Vs. Syndication which is better Investment?

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What Is a REIT?

• REIT stands for real estate investment trust.
  REITs are companies that pool investor funds to
  purchase real estate assets like office
  buildings, apartments, and hotels. These
  properties are owned by the REIT and rented out
  to tenants. Investors receive a payout based on
  the propertys performance and an ownership stake
  in the company.

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What Is a Syndication?

• Syndication is an agreement between multiple
  investors and one or more property owners. In
  this agreement, each investor puts a certain
  amount of money into the deal in exchange for a
  share of ownership in the project, a specific
  project with a specific capital raise and end
  date. The Syndicator then raises and pools
  funding for the project and oversees its
  development and construction. Once the project is
  completed and sold, profits from the sale go back
  to investors based on their percentage of
  ownership and set terms of the syndication. 

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How Does Real Estate Syndication Works

• Investors pool together money and use it to
  purchase properties that meet certain criteria
  determined by the syndicator or manager of the
  deal. In some cases the manager then finds
  tenants for these properties who will pay rent on
  time every month, allowing investors to collect
  their share of the profits from renting out these
  units. 

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Differences between REIT and Real Estate
Syndications
REITS Real Estate Syndication
REITs offer direct ownership Syndications involve indirect ownership
REITs are designed to provide stable returns Syndications, however, can be more volatile
REITs typically pay dividends at a higher rate than most stocks because theyre required by law to distribute 90 of their taxable income each year. Syndications may also be eligible for tax benefits if structured as limited partnerships or corporations, but these benefits vary by state and type of partnership
REITs have much broader diversification Real estate syndications are limited in the number of properties they can buy
REITs are liquid because theyre publicly traded securities Real estate syndication may not be
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REITS Vs. Syndication which is better Investment?

• Some investors prefer real estate syndications
  because they can choose specific properties and
  locations, while others prefer REITs because they
  offer more diversification and liquidity.
• Real estate syndications tend to have higher fees
  than REITs but give investors more control over
  the properties that they invest in. In addition,
  many people who participate in real estate
  syndications are able to profit from doing so
  without having to pay capital gains taxes on
  their earnings as long as they hold onto their
  shares for more than 12 months after purchasing
  them.

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  out to our office and learn about the power of
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