Real Estate Syndication
Real estateGlossary term
Definition
A partnership structure where multiple investors pool capital to purchase larger properties than they could afford individually. A sponsor or general partner manages the investment while limited partners provide capital and receive passive income distributions.
Related terms
- Rental IncomeMoney received from tenants for the use of real estate property. Rental income is considered taxable but can be offset by deductions including mortgage interest, property taxes, insurance, maintenance, and depreciation.
- 1031 ExchangeA tax-deferred swap of one investment property for another under Section 1031 of the Internal Revenue Code. The investor must identify a replacement property within 45 days and close within 180 days. Only applies to business or investment real estate, not primary residences.
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