REIT VS. SYNDICATION: THE ULTIMATE GUIDE
                     REIT VS. SYNDICATION: THE 
ULTIMATE GUIDE
https://www.cherifmedawar.com/reit-vs-syndication-the-ultimate-guide/
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?
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 
property’s performance and an ownership stake in the company.
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. 
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. 
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 Syndications may also be eligible for tax benefits 
than most stocks because they’re required by if structured as limited partnerships or 
law to distribute 90% of their taxable income corporations, but these benefits vary by state 
each year. 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 they’re publicly traded Real estate syndication may not be
securities
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.
Do you want to Crack the Code on RE Funds?
Reach out to our office and learn about the power of Regd 506 b/c 
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