b'Chapter 2What Can You Buy With a Syndicate or Fund?Suitable Real Estate Asset Classes Asyndicatororfundmanager(assetmanager)willfindasuitable property (or property type), form a real estate investment company, usually a limited liability company (LLC), to acquire it, and then find a lender (for commercial properties), and coordinate a group of investors who will contribute cash to the company for all acquisition and improvement costs not funded by the bank loan plus the asset managers acquisition fee. In exchange for their capital contributions, investors will receive a membership or ownership interest in the company and a return on their investment. The asset management team earns fees and a share of profits in exchange for their sweat equity.The Life Cycle of a Syndicate An illustration showing the life cycle of a typical real estate syndicate that acquires and owns a single commercial property is provided below:9'