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  • Harsha M

Syndication

Syndication is a partnership between several investors. They combine their skills, resources, and capital to purchase and manage a property.


Syndication can help investors achieve the benefits of owning an investment property (cash flow, appreciation, tax breaks) without the work or stress of being a landlord themselves.


There are two key players in any real estate syndication investment: the syndicator(s) and the passive investors.


The benefits of Syndication are as follows:

Passive Income

Hassle-Free

Tax Benefits

Appreciation

Control

Diversification


Disadvantages of current syndication process:

1) Buying/Selling the ownership is cumbersome. There is no exchange setup to trade real estate freely among investors.

2) Collateralization is not directly accessible to each investor independently, there is friction between investor and syndicator.

3) Exiting from the investment is not easy and in some cases, it is required that all the investors agree.

4) Individual buying a no rent insurance is not possible. A syndicator is required to process this insurance and would be applicable to all investors.


3Blocks intends to make the syndication process transparent between syndicator and investors. Both syndicators and investors would be rewarded efficiently through the 3Blocks syndication platform.



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