Though it may seem unlikely, there is an area of commercial real estate which is actually flowering. Headed by companies such as Passco, Inland, and American Realty Capital, “syndication” is becoming a widely popular financing and investment vehicle. Syndication takes advantage of Delaware Statutory Trusts (DSTs) and Tenant in Common (TICs) agreements by combining and funneling many small individual investments into a large commercial asset. In today’s market, where it is impossible for one investor to utilize the high loan to value ratios of the past and unlikely one would have enough cash to purchase a high value property outright, syndication offers a convenient financing alternative.
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