A multifamily syndication refers to a collaborative endeavor in which a collective group of investors combine their financial resources to procure substantial assets that would otherwise pose significant challenges for individual acquisition. The usual arrangement entails the involvement of general partners and limited partners.

The role of the syndicator, also known as the general partner, encompasses the supervision and administration of the property throughout various stages, including acquisition, loan agreements, thorough examination, renovation, and day-to-day operations. They bear complete responsibility and legal accountability for the company and its choices.

On the other hand, limited partners are investors who partake in a specific portion of the equity investment without actively participating in the everyday duties of the company. They carry no personal liability beyond the amount they have invested.