What is syndication in real estate investing?

Syndication in real estate investing refers to a collective investment approach where multiple investors come together to pool their financial resources, enabling them to invest in larger properties or projects than they could individually. This collaborative model allows investors to share both the risks and rewards associated with real estate investments.

By combining capital, syndication makes it possible for participants to engage in ventures that might otherwise be financially unfeasible for a single investor. This approach often involves a syndicator or sponsor who manages the investment, handles day-to-day operations, and is responsible for the property's success while the investors play a more passive role.

Other options describe different aspects of real estate but do not define syndication. Renting property to multiple tenants pertains to leasing practices, the planning stage before purchasing property focuses on strategizing investments, and renovating properties for resale deals with value addition methods but lacks the collaborative element that characterizes syndication in real estate investing.