A real estate syndication pools capital from multiple investors to acquire a commercial property that would be too large for any one person to buy alone. You invest as a limited partner (LP) while the sponsor and operating partner handle acquisition, operations, and eventual exit. Your capital sits in the common equity layer of the capital stack, alongside the sponsor's co-invest.
Returns typically come in two forms: ongoing cash flow from net rental income and appreciation realized at sale or refinance. Most Hardy Equity opportunities follow a standard waterfall — return of capital first, then a preferred return to LPs, then a profit split above that threshold — so investor returns are prioritized before sponsor compensation.