Question about multi-family syndication

[Chase Gu]

Hi - I have been reading posts about multi-family syndication. I wonder how the syndication works. Are investors LPs and the syndication guy/company as the GP? I assume these syndication deal are all-cash deals? No financing involve? Otherwise, how does financing work when you have so many investors?

Thanks a lot!

[Omar Khan]

@Chase Gu

GP = syndication team (general liability). They find, help to finance (debt and equity), manage and sell the property.

LP = investors (limited liability)

Practically, no deal is on a cash basis. The deals are structured as private securities. Hence, all LPs are members in a company that owns the asset. 

Financing is obtained through lending institutions based on the type of property being acquired as well as the personal relationships/net worth of the GPs.