What does syndication in real estate investing involve?

Syndication in real estate investing involves pooling funds from multiple investors to collectively purchase properties. This approach allows individuals to invest in larger and potentially more profitable real estate opportunities than they could on their own. By pooling resources, a group of investors can acquire properties that require substantial capital, share in the risks, and benefit from the returns generated by the investment. This model not only increases purchasing power but also diversifies risk among the investors, making real estate investment more accessible to those who might not have sufficient funds to invest independently.

The other options provided do not accurately describe syndication. Independent purchasing by individual investors does not involve collaboration or the pooling process that defines syndication. Financing properties through bank loans can be part of real estate investing, but it does not specifically relate to the concept of syndication, which emphasizes collective investment. Additionally, a government-sponsored investment program is a different concept altogether and does not relate to the collective pooling of funds among private investors.