What are Real Estate Syndications and Fund Investments?

By guest blogger Jacob Blackett

Real estate has long been heralded as one of the most reliable paths to building wealth. For generations, owning rental properties and collecting monthly income has been a tried-and-true strategy. But the reality of being a landlord—fielding midnight plumbing emergencies, managing unruly tenants, and handling the operational complexity—can quickly turn that dream into a part-time job.

Fortunately, real estate syndications and funds offer an alternative path: one that delivers the benefits of real estate investing without the day-to-day headaches.

In this blog post, I’ll share insights based on my direct experience owning hundreds of rental properties, investing in dozens of private syndications, and leading Holdfolio and SponsorCloud—two platforms built to make real estate investing more accessible. We’ll explore the advantages and drawbacks of real estate syndications and funds, how legislative changes have democratized access, and how we’re helping investors diversify without unnecessary complexity.

What are real estate syndications?

Real estate syndications are investment structures where multiple investors pool their capital to purchase and manage large real estate projects—everything from apartment complexes to office buildings and industrial parks. Typically, a sponsor or syndicator identifies the opportunity, acquires the property, and manages the project. Investors contribute capital in exchange for a share of the returns, which may include ongoing cash flow and profits upon the sale of the property.

Real estate funds work similarly, except instead of investing in a single property, investors buy into a diversified portfolio of properties. Funds are often professionally managed and may span different asset types or geographic regions, offering additional diversification benefits.

The lure of passive real estate investing

One of the biggest appeals of syndications and funds is the ability to invest passively. As an investor, you aren’t responsible for tenant issues, property management, or maintenance. This hands-off approach may be appealing for busy professionals or retirees seeking income without the operational burdens of direct ownership.

Moreover, you can avoid the liability risks that come with owning property in your name. In syndications and funds, you’re typically structured as a limited partner, which means your liability is limited to your investment amount.

From elite to accessible: The impact of the JOBS Act

For decades, real estate syndications were the playground of the ultra-wealthy. These private deals were largely inaccessible to the average investor, restricted to institutional players or those with deep industry connections.

That all changed with the passage of the JOBS (Jumpstart Our Business Startups) Act in 2012. This legislation loosened regulations around how private investment opportunities could be marketed and who could invest in them. Today, a much broader range of accredited investors—and in some cases, even non-accredited investors—can participate in real estate syndications and funds.

The result? A growing wave of investors is now able to tap into institutional-quality real estate opportunities without needing millions of dollars or a background in real estate.

A shift toward alternative investments

In today’s volatile economic landscape, more investors are seeking alternatives to the traditional 60/40 portfolio of stocks and bonds. Real estate, along with other private market opportunities, has emerged as a popular option.

Investing in alternative assets is booming in the U.S. A recent survey by Mercer found that 92% of financial advisors are allocating client funds to alternatives, and they plan to increase this allocation over the next couple of years. Investors are drawn to the possibility of steady income, capital appreciation, and portfolio diversification. Real estate, in particular, offers a compelling risk-reward profile and can serve as a hedge against inflation.

Video: Pros and Cons of Real Estate Syndications

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Potential benefits of investing in real estate syndications

Here are some of the reasons investors are drawn to real estate syndications and funds:

1. Passive income

Investors receive distributions from cash flow generated by the properties, all without lifting a finger to manage tenants or handle repairs.

2. Diversification

Real estate often has a low correlation with the stock market, helping to smooth portfolio volatility.

3. Tax advantages

Thanks to depreciation and capital gains treatment, real estate investors may enjoy significant tax benefits that aren’t available through traditional investments. Additional benefits apply when investing with a tax-advantaged IRA.

4. Attractive return potential

Many syndications aim to deliver annual returns in the 8–15% range, with a mix of cash flow and appreciation.

5. Access to a wide range of opportunities

From multifamily properties in fast-growing cities to commercial projects in emerging markets, investors can choose opportunities that align with their goals.

Things to consider when investing in real estate syndications and funds

While real estate syndications and funds have many attractive features, here are five things to keep in mind before you start investing:

1. Illiquidity

Unlike stocks or ETFs, you can’t just press a “Sell” button. Your capital is typically tied up for several years.

2. Limited access

High-quality syndication opportunities aren’t always easy to find, and many operate on an invitation-only basis.

3. Difficult to vet

It can be challenging for individual investors to evaluate sponsors, investment structures, and projected returns.

4.High minimums

Minimum investments often start at $100,000 or more, which can be a barrier to diversification for smaller investors.

How Holdfolio makes real estate syndications more accessible

At Holdfolio, we built our platform to remove traditional barriers to real estate syndications based on years of firsthand experience raising capital and managing investments. The platform makes it easy for investors to access curated real estate opportunities, often with minimum investments that are significantly lower than industry norms.

We also invest alongside our investors, which means we’re putting our own capital into the same opportunities, demonstrating both our confidence and our commitment to shared outcomes. This co-investment approach builds trust and helps mitigate some of the vetting challenges that individual investors often face.

By lowering minimums, Holdfolio allows investors to spread their capital across multiple properties or funds, enhancing diversification and reducing risk.

Invest using your IRA for tax advantages

One often overlooked benefit of private real estate investing is the ability to use tax-advantaged retirement accounts. Self-directed IRAs, for instance, allow you to invest in real estate syndications and funds while deferring taxes or even avoiding them entirely, depending on the type of account.

Through Equity Trust’s WealthBridge platform, investors can access Holdfolio directly from within their online account management system myEQUITY, making it seamless to invest in private real estate using tax-advantaged retirement funds. With just a few clicks, you can begin building a diversified real estate portfolio using your IRA funds.

Take the next step

Private real estate syndications and funds offer a powerful way to grow your wealth without the operational headache of being a landlord—something I’ve intentionally worked to solve through my companies by creating a truly hands-off, tech-enabled investing experience. And with platforms like Holdfolio and investment access through Equity Trust’s myEQUITY and WealthBridge, it’s never been easier to get started.

Visit WealthBridge through myEQUITY or open an Equity Trust IRA today to start taking advantage of private real estate investing.

About Jacob Blackett

Jacob Blackett is a seasoned entrepreneur and investor with a proven track record in private real estate and fintech. He began his real estate career in 2010 as a college student, using student loans to finance his first “fix and flip” deals. Within a year of graduating, he had completed over 50 transactions and went on to build a multi-billion-dollar investment portfolio through disciplined execution and a passion for innovation.

Jacob is the Founder and Managing Partner of Holdfolio , a real estate investment platform with a $3+ billion portfolio of private syndications across the U.S. He also serves as Co-Founder and CEO of SponsorCloud, a capital raising and investor management platform used by more than 750 firms representing over $10 billion in investor capital. He is passionate about modernizing how capital is raised and invested through scalable, tech-driven solutions. Jacob lives in Florida with his wife and three young children, and enjoys sports, outdoor adventures, and creating meaningful memories with his family.

Holdfolio is not an affiliate of Equity Trust Company (“Equity Trust”). Opinions or ideas expressed by third parties, their affiliates, and employees are not necessarily those of Equity Trust nor do they reflect their views or endorsement. As Equity Trust is a directed custodian, like any investment, it is your responsibility to conduct your own due diligence before investing and before choosing a provider that is right for you. Investing involves risk, including possible loss of principal.

Equity Trust makes no recommendation or representations as to any provider or the needs generally of any IRA owner or any IRA. Any information communicated by Equity Trust is for informational purposes only and should not be construed as tax, legal, or investment advice. Clients are in no way obligated to invest with Holdfolio and are free to select any provider or investment as they deem appropriate. No customer may rely on any statement made by Equity Trust or any of its officers, directors, employees, or agents for any decisions regarding Holdfolio. Whenever making a decision related to your account, please consult with your tax, financial, or legal professional.