This concludes Chapter 17. Below is a brief summary which you can review before you take your chapter quiz. 

Real estate syndication gives a person the chance to channel his or her private savings into real estate investments for which other financing cannot be obtained or is not available because of the large amount of money involved.

Professional management is considered essential to a successful syndication.

Syndication phases:

1. Origination(planning and buying the property, following registration and disclosure mandates, etc.);
2. Operation(in which the sponsor generally manages BOTH the syndicate and the actual property);
3. Completion or Liquidation(the property's resale).

Syndications forms: Corporate Form; General Partnership (Joint Venture); Limited Partnership and Limited Liability Company. 

The Department of Corporations regulates all REITs and has the authority to grant either a permit or an exemption in deciding whether a given form of business for pooling investment money constitutes a securities offering.

A real estate investment trust (REIT) is a type of company that sells securities specializing in real estate ventures.

1. An Equity Trust: invests in real estate itself or in several real estate projects;
2. A Mortgage Trust: invests in mortgages and other types of real estate loans/obligations.

Combination trusts: companies that engage in both of the aforementioned.

Qualification as a trust:

1. The REIT must be beneficially owned by at least 100 investors.
2. No five, or fewer, persons may hold more than 50 percent of the beneficial interests.
3. Transferable shares or certificates of interest must prove the beneficial interest.
4. In California, each share or certificate of interest must carry with it an equivalent vote. 

Keep in mind that the information we've explained throughout this Chapter is general in nature and by no means all encompassing. Licensees should contact the State Department of Corporations in order that they are fully informed about REITs and real estate syndication. Federal laws, IRS rulings, and the regulations of the Corporation Commissioner also address the most current legal regulations and provisions. A licensee should consult an attorney for specific advice.