# Real Estate Syndication

*Real Estate — Finicade finance glossary*

A syndication pools investor money to buy a property too large for any of them alone, with a sponsor finding, financing and managing it.

A syndication pools investor money to buy a property too large for any of them alone, with a sponsor finding, financing and managing it while passive investors supply most of the equity. Returns are split through a waterfall that pays investors a preferred return before the sponsor's promote. The passive investor's real diligence is on the sponsor's track record, since they control every decision after the wire clears.

**Also known as:** property syndicate, sponsor deal, private real estate fund

**Related terms:** [Equity Waterfall](https://finicade.com/glossary/equity-waterfall), [Equity Multiple](https://finicade.com/glossary/equity-multiple), [Sponsor](https://finicade.com/glossary/sponsor), [Private Equity](https://finicade.com/glossary/private-equity), [Commercial Real Estate](https://finicade.com/glossary/commercial-real-estate)

Source: https://finicade.com/glossary/real-estate-syndication