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Statistics for Real Estate Syndication
September 17 | 2013

Real Estate Syndication - By the Numbers

At RealtyMogul.com, we have underwritten over $400 million of real estate and collected immense amounts of data about real estate syndication – the process of pooling investors together to invest in real estate.  Because we’re at the center of this data collection, we are able to provide insights into the range of returns and fees associated with real estate syndications.

Our analysis exposes a massive, highly fragmented market that’s completely nonstandard.  In our report, we noticed variability in the net returns investors are being paid through real estate syndications and the fees professional real estate investment companies are earning to manage the underlying properties and manage the syndicate.  

Historically, this data has been hard to find, hard to quantify, and hard to identify trends.  That’s because most companies cannot access the specific transaction data the way Realty Mogul can.  Through relationships with private real estate investment companies and an analysis of over $375 million of real estate, we’re pleased to provide our survey findings.  You can download the full survey here.

Highlights included:

  • The average preferred return being offered to investors in today’s market is 8.5%
  • 47,000 investors participated in private real estate placements in 2012
  • The average acquisition fee paid to sponsors across the survey data was 1.79%

You can download our report for free here.  We’re providing it 100% free of charge as a big part of our culture is to bring more transparency to the real estate investing market.  Feel free to share it with others in your network.  Hope it’s interesting and if you have any questions, feel free to reach out to us at info@realtymogul.com

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